Noida authority to act against 12 realtors for not paying dues
The authority is likely to commence plot cancellation and attachment of properties from next month, said an official, asking not to be named.
The Noida authority on Thursday said it has decided to take stringent action against realtors who are yet to clear their land dues, despite the government announcing a policy last December that gave builders a chance to avail of rebates on interest rates and clear dues.
Officials said it was necessary for builders to clear their dues to pave way for execution of registries by homebuyers.
There are 57 defaulter projects in Noida, and of these, developers of around 30 have paid the initial 25% of the total dues amounting to over ₹250 crore.
There are at least 12 realtors out of 57 who have not given their consent under the new policy to pay dues, said the authority officials.
Officials said they will act on a case-to-case basis. If needed, the land allotment will be cancelled, builder assets seized and co-developers brought in to complete stuck projects, officials said.
According to Uttar Pradesh additional chief secretary Manoj Kumar Singh, they have decided to take action against each realtor as per the scheme’s provisions.
Singh, who is the state’s infrastructure and industrial development commissioner, and also chairman of the Noida authority and the Greater Noida authority, said: “We will take action on a case-to-case basis, one by one… The Noida authority has drawn up a list of all realtors and action will follow.”
The authority is likely to commence plot cancellation and attachment of properties from next month, said an official, asking not to be named.
Under the state’s policy, a realtor can avail of rebate for the two years of Covid-19 (2020 and 2021) and pay only 25% of the total dues upfront to get permission for registries. The remaining can be paid in parts within three years.
“Those who have not used the policy will fail to get any waivers in future,” said Singh.
The authority has made a list of developers of 12 group housing projects who have not accepted the package to date. They owed ₹1,433 crore to the authority as of December 31, 2023, officials said, adding that the amount is now ₹1,697 crore.
In May, the authority issued a final notice for cancellation of land allotment where third-party rights have not been created. The authority’s group housing department had informed these realtors to attend the meetings held between January and March, and even written intimation about their dues were given to them during the same period. But these realtors have not replied, said officials.
A final notice on punitive action, including attachment or cancellation of land allotment, was issued on May 7.
The 12 defaulting builders are IVR Prime ( ₹660 crore), Assotech Ltd ( ₹268 crore), Assotech Contracts ( ₹190 crore), RG Residency ( ₹170 crore), Futech Shelters ( ₹115 crore), Gardenia India ( ₹ 112 crore), AVP Buildtech ( ₹59 crore), TGB Infrastructure ( ₹55 crore), MPG Realty ( ₹39 crore), AGC Realty ( ₹21 crore), Civitech Developers ( ₹9 crore), and Manisha Keybee Project ( ₹38 lakh).
There are five developers whose dues were reduced to zero after recalculation.
The authority is in touch with the remaining 10, and they would hopefully pay the dues. Due to the payment of dues by these defaulter builders, the registry of about 550 flats has been done so far, said officials.
Confederation of Real Estate Developers Association of India (western UP chapter) (CREDAI) secretary, Dinesh Gupta said, “The developers are using the scheme and obtaining permission for registry in many projects. We hope that the remaining developers will also resolve issues and get permission for registry.”